Rithm Capital invests in its SFR portfolio by acquiring and maintaining a geographically diversified portfolio of high-quality single-family homes and leasing them to high-quality residents.

SFR properties HFI are carried at cost less accumulated depreciation and impairment. SFR properties HFS are managed for near term sale and disposition and are measured at the lower of carrying value or fair value less estimated cost to sell. SFR properties HFI and HFS are presented within single-family rental properties on the consolidated balance sheets.

The following table summarizes the net carrying value of investments in SFR properties:




	March 31, 2025		December 31, 2024
Land	$	189,549	$	191,992
Building	758,198		767,966
Capital improvements	152,761		150,811
Total gross investment in SFR properties	1,100,508		1,110,769
Accumulated depreciation	(88,522)		(82,474)
Investment in SFR Properties, Net	$	1,011,986	$	1,028,295

Depreciation expense for the three months ended March 31, 2025 and 2024 totaled $7.4 million and $7.7 million, respectively. Depreciation expense is included in general and administrative in the consolidated statements of operations.

As of March 31, 2025 and December 31, 2024, the carrying amount of the SFR properties includes capitalized acquisition costs of $7.1 million and $7.0 million, respectively.

The following table summarizes the activity for the period related to the net carrying value of investments in SFR properties:


	SFR Properties HFI		SFR Properties HFS		Total





Balance at December 31, 2024	$	989,002	$	39,293	$	1,028,295
Acquisitions and capital improvements	3,237		—		3,237
Transfers to (from) HFS/HFI	10,864		(10,864)		—
Dispositions	—		(12,136)		(12,136)
Depreciation expense	(7,410)		—		(7,410)
Balance at March 31, 2025	$	995,693	$	16,293	$	1,011,986

Rithm Capital generally rents its SFR properties under non-cancelable lease agreements with a term of one to two years.

The following table summarizes rental revenue and other variable revenue included in other revenues and other income (loss), net, respectively, on the consolidated statements of operations based on the specific lease terms for the period:


	Three Months Ended March 31,
	2025		2024
Rental revenue	$	19,402	$	18,949
Other variable revenue	2,330		593
Total Revenue	$	21,732	$	19,542

The following table summarizes the future minimum rental revenues under existing leases on SFR properties:

The following table summarizes the activity for the period of the SFR portfolio by properties:


	SFR Properties HFI	SFR Properties HFS	Total




Balance at December 31, 2024	3,891	158	4,049
Acquisition of SFR properties	—	—	—
Transfer to (from) HFS/HFI	45	(45)	—
Disposition of SFR properties	—	(42)	(42)
Balance at March 31, 2025	3,936	71	4,007